Abu Dhabi Trader License (Tajer License) Complete Guide
The Abu Dhabi Trader license, previously known as the Tajer license, allows startups, micro businesses and small businesses to practise a wide variety of activities - currently there are 1,200 to choose from. It's a incubator-style license enabling the license holder to setup in Abu Dhabi and test the market without needing to lease a commercial space for the first three years. This provides the flexibility for the license holder to work wherever they want, whilst removing the financial burden of a lease during the startup phase. A local sponsor is required.
Abu Dhabi Trader License - Overview
Cost effective license for startups in Abu Dhabi
Abu Dhabi mainland license, work throughout Abu Dhabi Emirate
No commercial premises needed for the first three years
Suitable for e-commerce businesses
Suitable for friends to start a business together
A local sponsor is required for some business activities
Visa for license holder(s) optional, but mandatory to employ staff
Employ up to three staff
12 months validity, renewable
Individuals can be in control of their own Abu Dhabi residence visa
Establish a side business whilst remaining in full-time employment
Some bank may offer corporate banking facilities
Abu Dhabi Trader License - Eligibility & Suitability
Applicants must be over 18
UAE Citizens
UAE Residents
Suitable for startups, entrepreneurs, micro and small businesses
Suitable for side-hustles
Abu Dhabi Trader License: Legal Structure & Ownership
Mainland or Free Zone
The Abu Dhabi Trader License is a mainland license, issused by the Abu Dhabi Department of Economic Development (ADDED), enabling the license holder to work throughout the Emirate of Abu Dhabi. This is not a free zone license.
Legal Form
The Abu Dhabi Tader License takes on the legal form of a Limited Liability Company (LLC). This means the owners contribute capital into the business in exchange for a percentage of the shares to become shareholders. Shareholders share the profit or loss of the company in proportion to the size of their shareholding. An LLC has it's own legal identity, separate from its owners, meaning the financial liability is limited to the value of the shareholders' respective shareholding. (In certain circumstances a shareholder can be held personally liable for the company's debts, e.g. if they have directly/knowingly contravened the law, commited fraud etc.)
Ownership
The Abu Dhabi Trader License requires a minimum of two shareholders and allows a maximum of 50. The shareholders must be individuals. If the business activity(ies) for the license are classified as FDI, expats can be shareholders without needing an Emirati sponsor. However, if the activity(ies) aren't classified as FDI, an individual Emirati partner is required to hold 51% of the shares in the Abu Dhabi Trader License (see 'Local Sponsor / Local Service Agent' below).
Share Capital
Minimum share capital is not defined.
Requirement for paid up share capital - waived.
Local Sponsor?
If the business activity(ies) for the Abu Dhabi Trader License require an Emirati partner to hold 51% of the shares, it must be an Emirati individual-corporates aren't allowed. Gateway Group understands that expatriates may not have established reliable, trustworthy relationships which would be suitable for fulfiling this commitment. Trying to find the right Emirati partner can delay the business setup and add extra pressure and uncertainty. To remove this hurdle, Gateway Group is willing to provide access to our own Emirati partners, to give our clients confidence their investment, assets and interests in their Trader License are protected, whilst providing them with the freedom to manage the day-to-day operations of the company without interference. Scan the QR code to Whatsapp Gateway Group's business setup team in Abu Dhabi to find out about our Individiual Local Sponsor Service:
Commercial Premises
Currently, there is no requirement to lease an office or commercial space for the first three (3) years of operation. This has been increased from the standard two year grace period. This gives the Abu Dhabi Trader License holder flexibility to work wherever they want and frees up working capital in the early days whilst you get your business off the ground.
An Abu Dhabi Tawtheeq lease contract for suitable commercial premises, in line with the activities on the license, will be necessary thereafter.
Existing Residence Visa
If the Abu Dhabi Trader License holder has an existing residence visa, it is not necessary to make any changes to the visa status. However, if you want to employ staff, it will be necessary to move your visa under the license first, unless you have a golden visa.
This license-type is ideal for startups as well as individuals wanting to start a side business, whilst remaining in full-time employment. It enables the license holder to continue working under their existing employer's visa sponsorship, whilst building up sufficient regular income for themselves, before committing to going 100% all-in and being fully self-employed. ( Note: You should check you won't be contravening any non-compete agreements you might have signed with your existing employer, if you will be providing the same/similar services, which will be in direct competition.
Abu Dhabi Trader License Visa
Abu Dhabi Trader license holders can apply for a residence visa, if required. Once the trade license has been issued, it will be necessary to apply for an Establishment Card, before starting the visa application process. Upon successfully obtaining your own visa, as the license holder you can then sponsor family members, providing you meet the requirements.
Abu Dhabi Trader License: Details
Trade License Application
Upon submission of the Abu Dhabi Trader License application, it is usually reviewed quickly, with the license issuance within 3-5 working days.
Trade License Validity
The Abu Dhabi Trader License is issued for a period of 12 months.
Trade License Renewal
The Abu Dhabi trader license needs to be renewed annually. Delays in renewing the license will incur fines for the license holder which will increase each month the license is not renewed.
Trade License Cancellation
When the license is no longer required, it needs to be cancelled and removed from the official registry. Failure to cancel the license will result in fines accruing, as well as liabilities relating to non-filing of tax returns.
Abu Dhabi Trader License: Essential Information
Business Activities
A wide selection of over 1,200 business activities are available for the Abu Dhabi Trader License.
Over time, an increasing number of business activities have been opened up for the Abu Dhabi Trader License. The latest additions were announced in July 2024 and include: maritime consultancies services, tourism and recreation consultants, analysis of accountancy and auditing system, logistics consultancy, statistical services consultancies, network consultancies, agricultural extension services, textiles and wearing apparel silk-screen printing, and design and artwork services.
Company Name
The license holder chooses the name for their business, called the trade name. The trade name must reflect the nature of the business (the activity(ies) being applied for on the license) and be unique in that it is not already in use.
Employing Staff
The Abu Dhabi Trader License allows up to three (3) employees.
To employ staff, the expat trader license holder is required to have their own visa under the license first, unless they are a golden visa holder.
Abu Dhabi Trader license employment visas are issued for two years.
Companies need to pay their employee salaries via the UAE's federal payroll system, the Wage Protection System (WPS).
Business Bank Account Opening
It is possible to open corporate bank accounts with the Abu Dhabi Trader License. However, not all banks offer this facility if there aren't any commercial premises registered under the company's name, so it will be necessary for you to check if your preferred bank accommodates this. Alternatively, you may opt for a lease to meet the bank's requirements. (Bear in mind, banks regularly update their account features and conditions to be competitive, reflect their current appetite for risk and to comply with industry regulations.)
Exit Strategy
Abu Dhabi Trader Llicenses are suitable for these types of exit:
If the company simply intends to stop operations and close. When the time comes, it is simply a case of liquidating the business and cancelling the license.
If the intention is to create a saleable business. When the time comes to sell the company, the sale is conducted by way of a share transfer to the new owner(s).
Abu Dhabi Trader License & Visa Requirements
Abu Dhabi Trader License Requirements
✔️ Full name
✔️ Date of birth
✔️ Nationality
✔️ Residential address (inc. verification, e.g. utility bill)
✔️ Mobile number
✔️ Email address
✔️ Source of funds
✔️ Purpose of the transaction
✔️ Occupation/employer details
✔️ UAE Pass app registration
✔️ Passport copy (6 months validity)
✔️ Visa copy
✔️ Emirates ID copy
✔️ Proof of expertise relevant to the business activity being applied for: attested university degree, attested certificate of experience or attested accredited accomplishments
✔️ Arabic No Objection Certificate (NOC) to the Abu Dhabi Department of Economic Development (applicants employed in the UAE).
Abu Dhabi Trader License & Visa Requirements
✔️ Everything in Establishment License Requirements
✔️ High resolution, passport size, studio photo, white background, without eye glasses, soft copy
✔️ Marital status
✔️ Mother’s name
✔️ Religion
✔️ Home country residential address
✔️ Home country telephone number
✔️ UAE residential address
✔️ Previous residence visa copy
✔️ Previous Emirates ID copy
✔️ Health insurance (to be arranged during the visa application process)
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Abu Dhabi Trader License, Tajer License. Page updated 28 August 2024.